| With the continuous strengthening of my country’s economy,the competition in the home appliance industry is saturated now.If home appliance companies want to gain a considerable market share,they must improve their core competitiveness.Merging competitors in the same industry is an effective way for a company to rapidly expand its scale and improve its brand influence.There are many ways of business mergers,and the method of merger and acquisition by share swap is more and more popular among large enterprises.However,under what conditions is such a combination suitable?How to set the appropriate share conversion price and share conversion ratio?How to produce a better merger effect?There are still no clear answers to these questions.Midea became the controlling shareholder of Little Swan as early as 2008.Now,in order to improve its competitiveness in the home appliance market,create a full range of home furnishing products and further move towards the development path of intelligent home furnishing products,Midea merged Little Swan by share swap again.The merger case provides a good opportunity for us to study the share-swap absorption merger.Firstly,this thesis introduces the concepts related to share swap absorption mergers and balanced scorecards,summarizes the motives of corporate mergers and acquisitions and the impact mechanism of merger motives on corporate performance based on existing literature and related theoretical foundations.The operation status and merger and acquisition process of Midea were analyzed,and the rationality of the share exchange ratio and share exchange price was analyzed.Then,combined with the development of Midea and Little Swan,the reasons for Midea’s share exchange and merger with Little Swan were summarized.This part is divided into two directions for analysis.One is from the perspective of selecting the acquiree,the reason why Midea chooses Little Swan as the acquiree,and the other is from the perspective of M&A selection method,why Midea chooses to exchange shares to absorb and merge.Finally,the impact of this M&A on the overall performance of Midea Group is analyzed from the four dimensions of the Balanced Scorecard.This thesis finds that the acquisition of Midea Group not only enhances the financial ability of the company,but also improves the business performance of the company.After the acquisition of Little Swan,Midea optimized and integrated the resources of the two companies,and further optimized the internal process management of the group,which not only improved the industrial chain of the washing machine sector,but also further promoted the formation of Midea Group’s full-category product portfolio,which improved brand awareness and online and offline market share.Incorporating the technical advantages and excellent team of Little Swan into its subsidiary has improved the research and development level of the group and the quality of the overall staff,thereby enhancing the learning and growth ability of the enterprise.This thesis enriches the research on the motivation and performance of domestic stock exchange mergers and acquisitions,and improves the theoretical system of stock exchange mergers and acquisitions in the same industry in my country.It is more pertinent and applicable,and has certain theoretical significance and academic value.In practice,it can also provide a reference for enterprises to determine the payment method for mergers and acquisitions in the future,and remind enterprises to pay attention to the rationality of the share exchange ratio and share exchange price when absorbing and merging. |
